Wealth in bank for the next few years

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Reference no: EM131836317

An investor is trying to lock her wealth in a bank for the next few years.

She faces three options:

The ?rst o?ers a monthly rate of 1 percent,

the second o?ers an semiannual rate of 6 percent,

and the third o?ers an annually continuously compounded rate of 12 percent.

Assuming all are risk free, rank the three options.

Reference no: EM131836317

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